How Your Tax Dollars Are Spent

The Tennessee Department of Revenue serves as the state’s primary tax collection agency, administering more than 25 different taxes and fees. In addition to tax collection and enforcement, the department is responsible for administering Tennessee’s motor vehicle registration and title laws.

During the 2020-2021 fiscal year, the department collected nearly $18.4 billion in state taxes and fees. The department also collected more than $3.7 billion in taxes for local, county, and municipal governments.  

The department's primary functions include: 

• Collection and apportionment of $22.1 billion in revenues annually
• Administration of Tennessee’s motor vehicle title and registration laws
• Promotion of voluntary compliance with Tennessee tax laws through taxpayer education and customer service
• Fair and practical administration of tax policy
• Compliance-focused audits of taxpayers across all tax types
• Collection of delinquent tax revenues, with a focus on promoting voluntary tax compliance
• Tobacco regulation and diligent enforcement (in conjunction with the Attorney General’s Office)
• Investigation of criminal tax fraud cases and assisting district attorneys with criminal tax fraud prosecutions
• Motor vehicle anti-theft inspections and investigations
• Administration of Tennessee’s motor vehicle insurance verification law
• Lockbox services for other state agencies